by Kimble Charting
The month of September ushered in some volatility to the inventory market… volatility we had not seen in fairly some time.
Maybe it’ll proceed into October. And maybe there’s a cause.
At present we check out a long-term “month-to-month” view of the S&P 500 Index.
As you’ll be able to see, the S&P 500 has been in an up-trend for over a decade. And this August, the Index closed the month at its 423.6% Fibonacci extension degree at (1). That closing additionally coincided with the underside of 11-year resistance.
The final time the S&P 500 hit a key Fibonacci extension degree (161.8%), it additionally was testing the underside of this exact same resistance… and it result in a 2-year pullback / stakeout.
The 423.6% Fib take a look at in August was adopted up with a big bearish month-to-month candle in September at (2). Observe by means of promoting in October wouldn’t be a very good signal.
Flawed place, unsuitable time for this sample within the S&P 500? Keep tuned!
This text was first written for See It Markets.com. To see the unique submit CLICK HERE.